NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget

That is why, the administration task of prepping operating budget will be curtailed to the healthcare setting.

Strategic financial management is a must for any entity, be it a small or large, with its own operating principle and environment. Whether the aim of the healthcare facility is to stay afloat or to scale up its operations, the latter is contingent on deft financial oversight. Nurse leaders’ work revolves around not only developing but also managing operating budgets which takes accuracy as well as prospective vision and application. An operating budget refers finance information which indicates the expected income and the expenditure which is projected to be incurred within a given period of time. The plan therefore provides prudent allocation of the resources and the achievement of financial objectives.

The Challenges Relating to the Implementation of a Normal Budget Management

A healthcare facility, especially one with 35 beds occupied and 20 permanent personnel, poses a number of financial issues to be disposed of properly. These by far include the actual wages for patients, insurance, maintenance, emergency operations, management systems, and so forth. Funding options for wages and the rest of the facility expenses are patients’ payments, state funding, and some special payments; these provide money for the facility’s operating budget. Making and keeping such a budget would require a comprehensive review of the revenue and expenses, the information gathering that involves the interdepartmental committees.

A budget, referring to an overall strategy in place, represents the allocation mechanism based on which managers attain affordability and high-quality health service delivery. Nursing manager is a type of executive role, which involves facilitating the following issues: clinical outcomes, the staffing, and the department’s daily operations. Amidst the problems of human resource busting and working with elderly patients, the operating budget must take this into consideration and will address both internal and external factors, labor market issues and aim to boost staff morale and the safety of both staff and patients.
 
Navigating Financial Constraints,NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget

The current reality of healthcare service often requires that nurse administrators do more with fewer resources due to the limited money available, which makes the proper planning & budgeting moments of an operating budget to be more important than ever. The first objective of operating budget is to produce an estimate of the resources required for the service delivery of high standard of care, to indicate potential (financial) targets and design a roadmap of meeting the department’s budget and operational goals.

The stages of operations budget preparation.

The formulation of an operating budget is based on certain steps that are specifically mentioned below. Firstly, the planning starts with taking a stand on the available sources of finances or sources of possible founding. The procedure passes departmental budgets into an organization budget in a process that entails: identifying costs; preparing revenue and expenditure forecasts. The total consideration taken in this solution also include capital expenditures and bonuses so as to allow the organization to operate efficiently and to achieve its objectives. These two tools- variance analysis and budgetary controls, must always be taken into account in this process as they enable comparisons between the budgeted amount and the actual figures leading to adjustments if any adjustments are needed (Maduekwe & Kamala, 2016).

Strategizing and Analysis of Results as Important Techniques of Evaluation

The hospital’s spending line is aimed to keep in line with its mission and enjoy better satisfaction among patients and the employees from the same establishment. Among nurse interventions shall be optimized and cost-effective treatment is the ultimate objective of the facility which will ensure better patient satisfaction levels. The monthly budget allotment is enough to meet the needs of the patient by ensuring they get the right number of staffs for the efficiency of the process (Dichev, I., 2017).
 
Conclusion NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget


Financial discipline is a key factor in preventing the healthcare sector which may become overdue. This can be accomplished by the linking of a particular nursing unit’s financial goals to the broad organizational objectives. In light of the fact that an operating budget is a very primary and vital stage, administrative and adjustments are a must in order to respond to any financial and operational alterations if comes across. The operating budget plays not only a role of the financial plan for the healthcare facility but also performs as a strategic device for improving patients’ care and technical productivity directly. There are indeed methodical steps to be followed, tasks to be done, and an overseeing process that steers the financial operations of healthcare so that the available resources will reach both patients and the institution.

References

Danna, D. (2016). The time spent on the operating budget composition and mastery. From 123WordsStrategies for Nurse Managers.

Dichev, I. (2017). On the theoretical background of financial reporting as a key to academic and professional success. Accounting and Business Research, vol.47, No.6, 2012, pp.617-632.

Conclusively, Hill, K. S., Higdon, K., Porter, B. W., Rutland, M. D., and Vela, D. K., (2015). Preserving staffing resources as a system: Nurse managers and task-force leaders heading quality-service efforts and efficiency initiatives.Nursing Economics, 33(1), 26–35.

Maduewkbe & Kamala, C. C., & P. (2016). The use of budgets in small and medium enterprises (SMEs) based in the Cape Metropole, South Africa. Current issues and managerial obsession with (14, Issue I), as well as being overcome and emerging at this stage are expected.1 (continued)), 183-191.

Rundino, A. (2020). Development of the budget for the take of nurse managers.www.sigmanursing.org.

Spacey, J. (2017). 5 major examples of strategic budgetSimplicable.

Woo, Y., Yuanjian, L. and Jing, L. (2022) investigated the truthful statements. Application of Flexible Budget Based on Company Profit Model: Tring VK’s financial data as a sample. Humanize: “Source: Asian Business Research, volume 7, number 2, page 88. “
 
 

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